In a recent interview with Thinking Crypto, Caitlyn Long, CEO and founder of Custodia Bank, expressed her view on the SEC’s decision regarding Ripple and XRP. The ruling, while appearing nuanced, was widely seen as a pivotal win within the industry. Notably, XRP was recognized as not inherently constituting security.
Long commended the SEC’s intricate approach and applauded how clear lines were drawn. She asserted that the decision was on point, albeit acknowledging its potential to shift if subject to future litigation. Long emphasized that the ongoing legal battles, involving the SEC and other entities, carry profound implications. A loss could undermine their authority, resembling a game where defeat relinquishes control.
Drawing a parallel to a puzzle, Long likened the Ripple case to a crucial piece in a broader scenario. Contrary to the SEC’s anticipation of an easy victory, the outcome diverged. The central issue revolved around the concept of an “investment contract” and its extent. The SEC’s anticipated triumph in local courts didn’t materialize. Capitalizing on the ruling, figures like Senator Lummis are leveraging it to bolster their beliefs, using facts as building blocks for their arguments.
Long highlighted the restrained jurisdiction the SEC holds over non-crypto securities, contrasting it with their initial expansive assumptions. She underscored the perplexing situation where crypto-related matters have ignited fervent reactions among federal agencies, resulting in litigations that could ultimately redefine the limits of their authority.
In essence, the SEC’s Ripple ruling marks a turning point with ripple effects throughout the industry. Long’s analysis sheds light on how this decision, while a win for XRP, also reveals the evolving dynamics of authority within the rapidly shifting crypto landscape.